St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-03-02
The Rate of Interest Reduced to 6 and 8
Per Cent. and Restrictions Put
Upon UsurerS.
The Absence of Sixteen Members Results
in Getting the High License Men
in Tight Place.
Every Bill Cleaned Up is the Record
OF Yesterday in the Mills of
the Senate.
Albert Lea Offers Seven Million Dol
lars for the Gapitol--Reap-
portionment.

10 believe that no action would DE taken on
the uSurv bill during the present session,
had their calculations knocked in the head
yesterday. the house taking up the bill and
passing it by a good majority. Mr.. Don
nelly was compelled to makea compromise,
however, which he admitted; but he said
he was willing to make almost any
concession if reduction could be
made in the rate of interest. Mr.. Donnelly's
original bill made the legal rate ) per cent.
and the rate when specified in writing I per
cent The bill passed yesterday makes the
rate 8 and S per cent, and MIR. Donnelly
supported it. Mr. Hendrickson led the OPP
position to the bill. Speaker Merriam was
on the floor and made his first speech of the
session. He contended that the rate
of interest was always governed by the
condition of business, and no legitimate
business in the commercial centers could
afford to pay over S per cent. for money.
He said he didn't refer to real estate. pork
or wheat. This condition was confined to
the cities; he didn't know how it was i'll the
country. 4 member asked Mr.. Merriam
the rate of interest on money loaned at his
bank. and he answered that there was not
81, 600 loaned at a rate over per cent
Mr.. Donnelly wanted lower rate, but he
didn't believe such a bill could be passed.
Mr.. Plowman also favored lower rate,
but would have to support the bill. The
vote resulted:
Yeas-Alexander. Anderson. j. A, Arne-
son, Arnold, Beatty, Bjorge. Champlin, Clou-
tier, Dickmann, Donnelly, Dornfeldt, Duane.
Dunno. Elmquist, Ellingson, Emery, Engel-
hard. Everson, Farley, Fathers, Freeman,
Furong, Halvorsou, Hanson. Hattlestad-
Heisler, Hendrickson, Hoppin, Iverson,
Johnsrud, Jones, William r., Reyes, Kreis,
Hummer Lehman, Light, Lucas, McArdle,
MattSon. Morrison, NaeSeth, Newell Mobiles,
Nordvold, PARROT, Plowman, Potter, Powers,
Pratt, Prosser, Quigley, Reese, Ryan, Sevat-
son, Shoemaker, Slaven, Snider, Swartwoudt,
Swenson, Teubert, Tompkins, Tousley, Ira
wicky, Walslrom, Wilson, Williams, Wollan
81.
Observation-Disclosures Brown, Bunge, Jr.,
Cullen, Howard, Hurd, Johnson, Latham,
Lee, Lum, Shuler, Skinner, Smith, Wander
Velde-16.
A motion to reconsider was then voted
down and the bill clinched for all time to
come. There were a number of dodgers
and call of the house had to be made to
get the eighty-three members in their seats.
Those absent or not voting were:
Anderson, r. NJ. Baker, Barker. Bennett,
Butfum. Colby, ComStock, Costello, Estes,
Flynn, Green, Gregory, Jones, j. N, Knox,
Low, Millar, Petit, Rogers, Shave, Sherwood,
Warren.
The bill has been amended in several i'm
portant particulars since it was first intro
ducei AS passed it is as follows:
Section l. That interest for any legal in
debtedness shall be at the rate of Sc upon
500 for Il year, unless different rate is con-
tracted for in writing; and no person, COM
pany or corporation shall either directly or
indirectly, by himself or any agent attor-
neY, take receive in money, goods or
things in action, or in any other way any
greater sum for himself or Sucn agent or at
torney OF both, or any greater benefit or value
for the loan of money or for forbearance to
collect any money already due, either as in
terest, or commission, or attorneys fees, or
by keeping back part of the principal sum
or by any other device, than So on 500 for
one year, but nothing herein contained shall
prevent any agent or attorney from charging
the usual and reasonable fee for making
search or drawing the necessary papers to
secure tue loan. In the computation of in
terest upon any bond, note or other contract,
interest shall not be compounded during the
period named in said bond, note or other
contract, but contract to pay interest, not
uSuriouS, upon interest overdue at the time
OF making the same shall not be construed to
be usurious. Interest at the rate of one
twelfth of per cent. per annum for every
thirty days shall be construed not TO exceed
8 per cent. per annum. Provided, that the
payment of interest in ad vance for ninety
days, or any less period, to any duly organ
lied banking corporation at a rate not to eX-
coed per cent. per annum shall not be
construed to constitute usury. Provided
further, that nothing herein shall be
construed to prevent the purchase of negotia-
Bile mercantile paper, usurious or otherwise,
for a valuable consideration, by an innocent
purchaser, free from all equities, at any
price, before the maturity of the same; when
it can be clearly shown that there has been
no intent to evade the provisions of this act,
and that the said purchase was not made at
the time of or was not part of the usurious
transaction. But in any case where the orig
inal holder of a uSurious note sells the same
TO an innocent purchaser, the maker of the
said note or his representatives shall have the
right to recover back from the said original
holder the amount of principal and interest
paid by him on said mole. Provided further,
that no merely clerical error i'll the computa-
1ion of interest, made with no intent to avoid
the provisions of this act, shall constitute
uSury.
Sec. 2. All bonds, bills, notes, assurances,
conveyances, chattel mortgages, ana all other
contracts and securities whatsoever, and ali
deposits of goods, or anything whatever,
whereupon or whereby there shall be re-
served, secured or taken any greater sum or
value for the loan or forbearance to collect
any money, goods or things in action, than as
above prescribed, shall be void. Whenever it
satisfactorily appears to court that any
bond, bill, note, assurance, pledge, convey
ance, contract, security or evidence Of debt,
has been taken or received in violation of the
provisions of this act, the court shall declare
the same to be void, and enjoin any proceed
ing thereon, AMI shall order the same to be
Cancelled and delivered up to the maker
thereof, or his legal representatives.
Sec. 8. Every person who, for any loan or
forbearance, shall have paid or delivered any
greater sum or value than is above allowed
TO be received, may, within two years after
such payment or delivery. by himself, his
heirs or legal representatives, recover in an
action against the person who shall have
taken or received the same, or his heirs or
legal representatives. the full amount of
principal and interest so paid by him, with
costs.
Sec f. Whenever in any action, in any
court, the defendant shall plead or answer the
defense of usury, either party to the action
NAV be wi ness in his own behalf on the trial
Whenever the borrower of any money, goods
or things in action shall file a bill III chancery
for the discovery of the money, goods or
things in action. taken or received in viola
zion of either of the foreogoing provisions, it
shall not be necessary for him to pay or offer
to pay any interest whatever on the sum or
loan nor shall any court OF equity require or
compel the payment CT deposit of the princ-
pal sum, or any part theref as a condition of
granting relief to the borrower in any case of
usurous loan forbidden By this chapter.
Sec. 5. Every person, company or corpora
tion offending against the provisions of this
act shall be compelled to answer on oath any
complaint that may be exhibited or filed
against him in the district court for the
proper county, for the discovery and delivery
of any bond, note, bill, or other contract, or
any sum of money, goods or thugs in action
so taken, accepted, received or held, IN viola
ton of any of the foregoing provisions.
Sec g. That any agent for the loan of any
money or for the renewal of any loan shall
he entitled to take or receive any commission
from the borrower of not TO exceed l per